Podcast Summary: BiggerPockets Real Estate Podcast

Episode: What Happened to Real Estate Investing?

Date: April 10, 2026
Host: Dave Meyer (A), Head of Real Estate @ BiggerPockets
Guest: Henry Washington (B), Real Estate Investor

Episode Theme Overview

This episode addresses the question: "What happened to real estate investing?" Dave and Henry step back from the headlines and social media noise to dissect the seismic changes in the real estate investing landscape since the end of the so-called “Goldilocks Era” (2012-2022), exploring why things feel harder, how expectations have shifted, and why, despite lower margins and new challenges, real estate remains one of the best long-term wealth-building vehicles.

Key Discussion Points and Insights

1. Real Estate's “Easy Mode” is Over—And That’s Okay

• Market Context: From 2012-2022, real estate investing was “easy” and profitable, with low interest rates, high rents, and ample information (00:00–05:37).
• Market Shift: The current climate features higher rates, slower rent growth, stubborn prices, and more selective buyers and sellers.
• Historical Normalcy: Dave: “The fact that it goes into these cycles...and things get better, they get harder, and then they get better again, is just a normal part...of any economic cycle.” [01:32]
• Attitude Adjustment: Henry: “Real estate isn't supposed to be easy...we're just now seeing the hard part for the first time.” [01:13]

2. The Importance of Adjusting Expectations

• Resetting Investor Mindset: Many entered the market believing in get-rich-quick returns and effortless success; the hosts stress that the new era requires skill and patience.
• Quote: Dave: “The fundamental challenge that this industry is having is resetting expectations back to what it's like to be a real estate investor in normal market conditions.” [04:45]
• Social Media Reality: Exaggerated “success stories” fueled unrealistic beliefs about how quickly investors could retire or create passive wealth.

3. Opportunities in a “Hard” Market; Why This Benefits Good Investors

• Less Competition: Fewer investors are willing to work at it; those who put in the effort face less competition [00:28, 02:20].
• Skill Development: “If you get your reps in during a difficult market, when the market does come around...you're so much better positioned to clean house because you learned and got prepared.” —Henry [03:00]
• Quality over Quantity: The shift pushes investors to stick with fundamentals and develop resilience.

4. What, Specifically, Has Gotten Harder?

• Interest Rates: Jet-fueled increases in borrowing costs.
• Insurance and Taxes: Dramatic hikes in premiums and property taxes, especially after natural disasters and regulatory squeeze [14:03].
• Stagnant Rent Growth: “We weren't seeing the rent growth that we were used to seeing.” —Henry [15:03]
• Seller Expectations: Sellers anchored to previous high prices, slow to adjust even as buyer offers drop [15:15–16:05].
• Summary: Dave: “It's just been one thing after the other.” [15:12]

5. The New Reality: Lower Margins, More Rigorous Underwriting

• Lower Returns: Average deal margins are not as strong as they were; 2016 returns are now “a fantasy.”
• Need for Conservative Underwriting: “We're trying to mitigate that by just ensuring that we underwrite more conservatively and we buy at deeper discounts.” —Henry [07:56]
• Patience Required: Finding a deal is now a numbers game; only 1–2% of leads are viable [18:23].
• Quote: Dave: “Can I still find today a real estate deal on market that is better than what I think the stock market will do over the next three years? Yes, to me, yes.” [09:49]

6. Dealing with Doubters: Is Real Estate “Dead?”

• Social Media Skepticism: Some influencers declare real estate is dead—often those who relied on course sales or exaggerated results.
• Quote: Henry: “I just don't understand how you can say real estate is dead. Unless laws change that stop normal people from buying real estate, I don't think it's ever going to be dead.” [21:25]
• Long-Term Perspective: Dave: “Returns are going to probably be lower across the board, but, like, can you still make 15, 20 return on real estate? ...That is unbelievable.” [22:50]

7. Practical Adjustments: Underwriting in Today’s Market

• Zero Appreciation Assumption: Dave never counts on appreciation unless it’s forced through value-add; focuses on cash flow, amortization, and tax benefits [28:06].
• Quote: “Priority number one in every deal is protect against downside risk. Priority two is make money.” —Dave [32:02]
• Discipline Over FOMO: Walk away from close-but-not-quite deals; be prepared to buy fewer or even no properties rather than compromise standards [30:04].

8. Risk Management—What Really Sinks Investors

• Biggest Risks: Not being able to hold assets long-term due to poor cash flow, over-leverage, or lack of reserves [34:12].
• Hidden Dangers: Ignore vacancy, expense creep, and capital drain at your peril.
• Quote: “If you can protect against downside risk...you will guarantee to make money.” —Dave [33:32]

9. The Silver Lining: Where Things Are Improving

• Improved Affordability: Prices, while sticky, are softening in some markets, improving affordability and buyer leverage [35:46].
• More Negotation Power: “Over the past 90 to 120 days we have been seeing some of the best spreads on deals...since the 2017, 2018 time.” —Henry [36:27]
• Encouraging Patience: For disciplined investors, this transition period can be fertile ground for long-term (and safer) wealth building.

Notable Quotes & Memorable Moments

| Time | Speaker | Quote/Highlight | |--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------| | 01:32 | Dave | “This is kind of normal ... the fact that it goes into these cycles... is just a normal part... of any economic cycle.” | | 02:20 | Henry | “It weeds out people who aren't great at investing... There's still the opportunity to buy a little bit lower right now...” | | 04:45 | Dave | “...the fundamental challenge... is resetting expectations back to what it's like to be a real estate investor in normal market conditions.” | | 03:00 | Henry | “If you get your reps in during a difficult market... you're so much better positioned to clean house when the market comes around.” | | 07:56 | Henry | “We're trying to mitigate that by just ensuring we underwrite more conservatively and buy at deeper discounts...” | | 09:49 | Dave | “Can I still find today a real estate deal on market that is better than what I think the stock market will do...? Yes, to me, yes.” | | 21:25 | Henry | “I just don't understand how you can say real estate is dead. Unless laws change... I don't think it's ever going to be dead.” | | 28:06 | Dave | “For just buying regular rental properties I'm assuming no appreciation. ...If it is zero, does this still make sense?” | | 32:02 | Dave | “Priority number one in every deal is protect against downside risk. Priority two is make money.” | | 33:32 | Henry | “Protecting against downside risk is making money.” | | 36:27 | Henry | “Over the past ...120 days, we have been seeing some of the best spreads on deals that I've seen in a long time...” | | 38:45 | Henry | “The goal is get a comfortable level of cash reserves, stick to your underwriting, only buy deals that fit ... and in five years you'll look like a frick fracking genius.” |

Timestamps for Important Segments

• 00:00–05:37: Setting the stage—how and why the market changed
• 05:37–10:49: Why fundamentals and patience matter more than ever
• 14:03–18:23: The multi-pronged cost squeeze: rates, insurance, taxes, rents
• 21:25–23:00: Responding to those who say "real estate is dead"
• 27:44–32:55: How to underwrite and mentally approach deals now
• 32:55–35:46: Risk management: staying in the game, cash reserves, avoiding loss
• 35:46–39:01: Upsides: better spreads, improved affordability, negotiating power

Actionable Takeaways

• Reset your expectations: Returns are lower, deals are harder, but fundamentals work.
• Underwrite conservatively: Assume no appreciation unless you can force it.
• Prioritize risk management: Protect downside first, profit second.
• Be patient: Only pursue deals that strictly meet buy criteria; don't fudge numbers.
• Prepare for better days: This “hard” era builds skill—and those who persevere will be best positioned for the next upswing.

Final Thoughts

The “easy” years of real estate investing are over, but not the opportunity. With resilience, discipline, and a renewed focus on fundamentals and downside protection, committed investors can still thrive—and may soon find themselves with the best prospects in years as seller psychology (and the market) finally adjusts.